Canada | 001-14944 | N/A | ||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14.a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition |
Item 5.02. | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers |
Item 9.01. | Financial Statements and Exhibits |
99.1 | Press Release, dated June 14, 2011, issued by Mad
Catz Interactive, Inc., furnished pursuant to Item 2.02 of Form 8-K. |
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Date: June 14, 2011 | MAD CATZ INTERACTIVE, INC. |
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By: | /s/ Allyson Evans | |||
Name: | Allyson Evans | |||
Its: Chief Financial Officer | ||||
-3-
Conference Call:
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Today, June 14th, 2011 at 5:00 p.m. ET | |
Dial-in numbers:
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(212) 231-2901 (U.S. & International) | |
Webcast:
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www.madcatz.com (Select Investors) | |
Replay Information:
|
See text of the release |
Mad Catz Interactive, 6/14/11
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page 2 |
§ | Fiscal 2011 net sales increased 54.6% to $184.0 million, while fiscal fourth quarter sales rose 28.3% to $33.7 million: |
o | North American net sales increased 70.5% to $113.1 million, and 40.5% to $21.4 million, in the fiscal 2011 full-year and fourth quarter periods, respectively. North American net sales represented 61.5% and 63.6% of full-year and quarterly net sales, respectively; | ||
o | European net sales rose 36.4% to $66.8 million, and 9.0% to $11.1 million, in fiscal 2011 and in the fiscal 2011 fourth quarter, respectively. European net sales represented 36.3% and 33.0% of full-year and quarterly net sales, respectively; and, | ||
o | Net sales to other countries increased 10.6% to $4.1 million, and 41.2% to $1.2 million, in fiscal 2011 and in the fiscal 2011 fourth quarter, respectively. Net sales to other countries represented 2.2% and 3.4% of full-year and quarterly net sales, respectively. |
Mad Catz Interactive, 6/14/11
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§ | Gross sales by platform: |
o | Xbox 360 products accounted for 31% and 24% of sales in the fiscal 2011 full-year and fourth quarter versus 31% and 32% in the respective prior year periods; | ||
o | PC product sales were 15% and 24% of sales in the fiscal 2011 full-year and fourth quarter versus 22% and 19% a year ago, respectively; | ||
o | PlayStation® 3 products sales accounted for 17% and 13% of fiscal 2011 full-year and fourth quarter sales versus 17% and 18% in the respective prior year periods; | ||
o | Wii platform products represented 14% and 8% of fiscal 2011 full-year and fourth quarter sales versus 13% and 16% in the prior year periods, respectively; | ||
o | Handheld platform products were 3% and 4% of sales in the fiscal 2011 full-year and fourth quarter periods versus 4% and 3% in the prior years respective periods; and, | ||
o | All other platforms accounted for 20% and 27% of fiscal 2011 full-year and fourth quarter sales versus 13% and 12% in the respective prior year periods. |
§ | Gross sales by category: |
o | Controllers represented 15% and 11% of sales in the fiscal 2011 full-year and fourth quarter versus 28% and 25% in the prior year periods, respectively; | ||
o | Specialty controllers accounted for 28% and 32% of sales in the fiscal 2011 full-year and fourth quarter versus 24% and 23% in the prior year periods, respectively; | ||
o | Accessories sales were 12% and 13% of sales in the fiscal 2011 full-year and fourth quarter versus 24% in each of the respective prior year periods; | ||
o | Audio products accounted for 27% and 30% of fiscal 2011 full-year and fourth quarter sales versus 15% and 20% of sales in the prior year periods, respectively; | ||
o | PC input device sales were 7% and 12% of sales in the fiscal 2011 full-year and fourth quarter versus 8% and 7% in the respective prior year periods; and, | ||
o | Game sales accounted for 11% and 2% of sales in the full-year and fourth quarter of fiscal 2011 versus 1% and 1% in the respective prior year periods. |
§ | Gross sales by brand: |
o | Mad Catz products represented 61% and 49% of sales in the fiscal 2011 full-year and fourth quarter versus 69% and 68% in the respective prior year periods; | ||
o | Tritton products accounted for 14% and 23% of sales in the fiscal 2011 full-year and fourth quarter, with no corresponding sales in the prior periods; | ||
o | Cyborg sales were 7% and 13% of sales in the fiscal 2011 full-year and fourth quarter versus 6% in each of the prior years respective periods; | ||
o | Saitek products accounted for 6% and 9% of fiscal 2011 full-year and fourth quarter sales versus 12% and 10% of sales in the prior year periods, respectively; | ||
o | Eclipse sales were 3% and 4% of sales in the fiscal 2011 full-year and fourth quarter versus 6% and 5% in the respective prior year periods; and | ||
o | Other branded sales accounted for 9% and 2% of sales in the full-year and fourth quarter of fiscal 2011 versus 7% and 11% in the respective prior year periods. |
§ | Reported net position of bank loan less cash at March 31, 2011 of $1.7 million compared to $15.9 million as of December 31, 2010, and $1.6 million at March 31, 2010. |
Mad Catz Interactive, 6/14/11
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page 4 |
o | Eclipse mobilmouse range of colored lifestyle mice for the PC; | ||
o | Mad Catz range of licensed accessories for the Nintendo 3DS®; | ||
o | Mad Catz range of licensed WWE® All Stars BrawlStick and BrawlPad videogame accessories; and, | ||
o | Mad Catz range of licensed MARVEL® VS. CAPCOM® 3: Fate of Two Worlds Arcade FightStick Tournament Edition. |
o | Tritton range of Microsoft® licensed, co-branded audio headsets; and, | ||
o | Mad Catz licensed wireless force feedback wheel for the Xbox 360®. |
o | Raised $12.2 million in a private placement financing through the issuance of approximately 6.35 million shares of common stock and warrants to purchase approximately 2.54 million additional shares of common stock exercisable at $2.56 per share; | ||
o | Repaid all principal and interest related to the $14.5 million convertible loan notes issued when the Company purchased the Saitek group of companies in November 2007; | ||
o | The Cyborg branded R.A.T.7 gaming mouse won the coveted IGN Best PC Accessory of 2010 award; | ||
o | Introduced the Apple Mac OS X Driver for the Cyborg R.A.T. range of professional gaming mice, enabling Mac users to experience the advanced feature set of the award winning Cyborg R.A.T.; | ||
o | Entered into an agreement with Epic Games, Inc. to produce a range of accessories for the highly anticipated Gears of War 3, scheduled to be released exclusively for Xbox 360® during the 2011 holiday season; | ||
o | Entered into an agreement with Electronic Arts Inc. to produce branded PC and console videogame accessories based on The Sims franchise; | ||
o | Acquired V Max Simulation Corporation, which designs, constructs, integrates, and operates flight simulation equipment and develops flight simulation software; | ||
o | Formed ThunderHawk Studios to develop a series of MMO (massive multiplayer online) flight simulation games to leverage the market share leadership and global distribution of our Saitek simulation products; and, | ||
o | Previewed War Wings: Hell Catz, an aerial combat game developed by Trickstar Games and published by Mad Catz expected to launch in 2012. |
Mad Catz Interactive, 6/14/11
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page 5 |
Allyson Evans, CFO
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Joseph Jaffoni, Norberto Aja, James Leahy | |
Mad Catz Interactive, Inc.
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Jaffoni & Collins Incorporated | |
(619) 683-9830
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(212) 835-8500 or mcz@jcir.com |
Mad Catz Interactive, 6/14/11
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page 6 |
Three Months Ended | Twelve Months Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net sales |
$ | 33,697 | $ | 26,268 | $ | 183,974 | $ | 119,012 | ||||||||
Cost of sales |
23,178 | 19,193 | 130,605 | 82,616 | ||||||||||||
Gross profit |
10,519 | 7,075 | 53,369 | 36,396 | ||||||||||||
Operating expenses: |
||||||||||||||||
Sales and marketing |
3,327 | 2,706 | 14,316 | 11,452 | ||||||||||||
General and administrative |
3,204 | 2,811 | 13,794 | 12,118 | ||||||||||||
Research and development |
1,930 | 624 | 4,678 | 2,657 | ||||||||||||
Acquisition related items |
164 | | 873 | | ||||||||||||
Amortization of intangibles |
242 | 190 | 951 | 1,758 | ||||||||||||
Total operating expenses |
8,867 | 6,331 | 34,612 | 27,985 | ||||||||||||
Operating income |
1,652 | 744 | 18,757 | 8,411 | ||||||||||||
Interest expense, net |
(614 | ) | (597 | ) | (2,897 | ) | (2,460 | ) | ||||||||
Foreign exchange gain (loss), net |
1,237 | 40 | 1,195 | (270 | ) | |||||||||||
Other income |
24 | 114 | 247 | 252 | ||||||||||||
Income before income taxes |
2,299 | 301 | 17,302 | 5,933 | ||||||||||||
Income tax (expense) benefit |
(813 | ) | 537 | (6,367 | ) | (1,470 | ) | |||||||||
Net income |
$ | 1,486 | $ | 838 | $ | 10,935 | $ | 4,463 | ||||||||
Net income per share: |
||||||||||||||||
Basic |
$ | 0.03 | $ | 0.02 | $ | 0.20 | $ | 0.08 | ||||||||
Diluted |
$ | 0.03 | $ | 0.02 | $ | 0.18 | $ | 0.08 | ||||||||
Weighted average number of common
shares outstanding: |
||||||||||||||||
Basic |
56,257,384 | 55,098,549 | 55,429,673 | 55,098,549 | ||||||||||||
Diluted |
70,262,793 | 55,117,299 | 66,924,206 | 55,103,237 |
Mad Catz Interactive, 6/14/11
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page 7 |
March 31, | March 31, | |||||||
2011 | 2010 | |||||||
Assets |
||||||||
Current assets: |
||||||||
Cash |
$ | 3,734 | $ | 2,245 | ||||
Accounts receivable, net |
19,846 | 14,620 | ||||||
Other receivables |
329 | 123 | ||||||
Inventories |
27,978 | 16,975 | ||||||
Deferred tax assets |
85 | 17 | ||||||
Income tax receivables |
| 21 | ||||||
Other current assets |
2,343 | 1,410 | ||||||
Total current assets |
54,315 | 35,411 | ||||||
Deferred tax assets |
590 | 766 | ||||||
Other assets |
639 | 626 | ||||||
Property and equipment, net |
3,921 | 3,452 | ||||||
Intangible assets, net |
5,606 | 2,828 | ||||||
Goodwill |
10,463 | 8,466 | ||||||
Total assets |
$ | 75,534 | $ | 51,549 | ||||
Liabilities and Shareholders Equity |
||||||||
Current liabilities: |
||||||||
Bank loan |
$ | 5,408 | $ | 3,829 | ||||
Accounts payable |
13,700 | 11,871 | ||||||
Accrued liabilities |
11,048 | 7,988 | ||||||
Convertible notes payable |
14,500 | | ||||||
Contingent consideration, current |
1,542 | | ||||||
Income taxes payable |
1,918 | 1,670 | ||||||
Total current liabilities |
48,116 | 25,358 | ||||||
Contingent consideration |
2,897 | | ||||||
Other long term liabilities |
424 | 357 | ||||||
Convertible notes payable |
| 14,500 | ||||||
Total liabilities |
51,437 | 40,215 | ||||||
Shareholders equity: |
||||||||
Common stock, no par value, unlimited shares
authorized; 57,029,350 shares issued and
outstanding at March 31, 2011 and 55,098,549
issued and outstanding at March 31, 2010 |
50,648 | 48,865 | ||||||
Other comprehensive loss |
(10 | ) | (55 | ) | ||||
Accumulated deficit |
(26,541 | ) | (37,476 | ) | ||||
Total shareholders equity |
24,097 | 11,334 | ||||||
Total liabilities and shareholders equity |
$ | 75,534 | $ | 51,549 |
Mad Catz Interactive, 6/14/11
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Three Months Ended | Year Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net sales |
||||||||||||||||
United States |
$ | 20,216 | $ | 14,704 | $ | 107,528 | $ | 63,223 | ||||||||
Europe |
11,114 | 10,194 | 66,834 | 49,005 | ||||||||||||
Canada |
1,215 | 554 | 5,547 | 3,109 | ||||||||||||
Other countries |
1,152 | 816 | 4,065 | 3,675 | ||||||||||||
$ | 33,697 | $ | 26,268 | $ | 183,974 | $ | 119,012 |
Three Months Ended | Year Ended | |||||||||||||||
[Do we need the $ throughout or | March 31, | March 31, | ||||||||||||||
just on top and bottom?] | 2011 | 2010 | 2011 | 2010 | ||||||||||||
Pre-tax income |
$ | 2,299 | $ | 301 | $ | 17,302 | $ | 5,933 | ||||||||
Amortization of intangible assets |
$ | 242 | $ | 337 | $ | 951 | $ | 2,345 | ||||||||
Stock-based compensation cost |
$ | 145 | $ | 152 | $ | 603 | $ | 610 | ||||||||
Adjusted pre-tax income* |
$ | 2,686 | $ | 790 | $ | 18,856 | $ | 8,888 | ||||||||
Adjusted provision for income
taxes (at effective rate)* |
$ | 922 | $ | (12 | ) | $ | 6,500 | $ | 2,213 | |||||||
Adjusted net income * |
$ | 1,764 | $ | 802 | $ | 12,356 | $ | 6,675 | ||||||||
Adjusted diluted earnings
per share* |
$ | 0.03 | $ | 0.01 | $ | 0.20 | $ | 0.12 | ||||||||
* | Adjusted net income and adjusted diluted earnings per share are non-GAAP financial measures and are not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Companys results of operations as determined in accordance with GAAP. Mad Catz believes that certain non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding the Companys performance by excluding certain items that may not be indicative of the Companys core business, operating results or future outlook. Mad Catz management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing the Companys operating results, as well as when planning, forecasting and analyzing future periods. These non-GAAP measures, specifically those that adjust for stock-based compensation and amortization of intangibles, also facilitate comparisons of the Companys performance to prior periods. |
Mad Catz Interactive, 6/14/11
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Three Months Ended | Year Ended | |||||||||||||||
March 31, | March 31, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
Net income |
$ | 1,486 | $ | 838 | $ | 10,935 | $ | 4,463 | ||||||||
Adjustments: |
||||||||||||||||
Interest expense |
613 | 640 | 2,897 | 2,460 | ||||||||||||
Income tax
expense (benefit) |
813 | (537 | ) | 6,367 | 1,470 | |||||||||||
Depreciation and
amortization |
727 | 762 | 2,764 | 3,766 | ||||||||||||
EBITDA |
$ | 3,639 | $ | 1,703 | $ | 22,963 | $ | 12,159 |